June 28, 2012

In Jovanovic v. Abel, Case No. A131578 (1st Dist., Div. 4 June 27, 2012) (unpublished), plaintiffs successfully obtained a preliminary injunction to stop a foreclosure of a multi-unit condominium project by some hard money lenders/investors, but had to post a $90,000 injunction bond as a condition of the injunction. They eventually lost, with the injunction dissolved and the defense being granted a motion to enforce plaintiffs’ liability on the bond against the surety.

Plaintiffs and nonpaying surety appealed, but lost. Based on CCP § 996.480(a)(2), successful hard money lenders were entitled to a mandatory award of attorney’s fees for their appellate fees as against nonpaying surety. However, even though the request for fees was made in the respondents’ brief, the appellate court remanded to have the trial court determine the amount of fees, although directing that the lenders were entitled to fees under the statute. (Cal. Rules of Court, rule 3.1702(c).)